Capitol Recap

The following offers education-related highlights of the recent
legislative sessions. The enrollment figures are based on estimated
fall 2001 data reported by the National Center for Education Statistics
for prekindergarten through 12th grade in public elementary and
secondary schools. The figures for precollegiate education spending
include money for state education administration, but not federal,
flow-through dollars, unless otherwise noted.

Iowa

Salary Funds Remain
After Deep Budget Cuts

It took two special sessions and intensive negotiations between
Democratic Gov. Tom Vilsack and the Republican-dominated state
legislature to address the Hawkeye State's multimillion-dollar
shortfall in the current fiscal year, as well as for the 2002-03
budget.

Democrat

Senate:
21 Democrats
29 Republicans

House:
44 Democrats
29 Republicans

Enrollment:
491,000

To balance the 2001-02 budget, Iowa legislators and the governor
pulled about $219 million from economic-emergency funds, cash reserves,
and other miscellaneous funding. Every state agency had to contend with
an average 6 percent budget cut to make up for a $300 million decrease
in state revenues before the 2001-02 fiscal year even began.

The department of education closed its offices for two half-days
earlier this month to cope with cuts to its $5 million budget.

The economic picture isn't any brighter for the 2002-03 fiscal year,
as lawmakers grappled with a projected $220 million shortfall. Still,
legislators managed to protect per-pupil funding for school districts
in the state's $2.2 billion budget for K-12 education. The portion of
the budget that covers per-student funding to school districts
increased by $59 million, or 1 percent, over fiscal 2002 to $1.7
billion.

The full $40 million set aside for Iowa's ambitious teacher-quality
initiative—which hinges on a salary plan that pays teachers based
on their work performance and student achievement— survived the
tight budget situation. This year all Iowa districts must participate
in the new salary schedule and mentoring programs for new teachers.
About $30 million for class-size reduction was left untouched as
well.

"That we got any increase in funding for schools is good news," said
Kathi Slaughter, a spokeswoman for the Iowa Department of
Education.

Yet not every portion of the education budget was spared the budget
ax. Technology, school-to-work programs, the state's involvement in the
federal AmeriCorps program, and vocational education were among the
fiscal victims.

The legislature completely eliminated the K-12 technology budget, to
the tune of $5.7 million. But school districts can tap their
class-size-reduction funds to make up some of the difference. Lawmakers
also wiped out all of the roughly $185,000 in funding for
school-to-work programs, about $142,000 for AmeriCorps after-school
programs, and $80,000 for youth vocational organizations.

Iowa also passed its first charter school law. Under the statute,
Iowa can now establish 10 pilot charter schools. Local districts would
charter the schools, which could grow out of current programs or be new
schools. All charter schools must be approved by the state board of
education, under the law.

—Karla Scoon Reid

New Mexico

Overriding Third Veto,
Legislature Passes Budget

In an extraordinary move, the New Mexico legislature voted to
override Gov. Gary Johnson's third veto of its $3.9 billion budget bill
in a special session May 24.

Under the fiscal 2003 budget passed by the Democratic-controlled
legislature, schools would get $1.66 billion, which means spending on
public education will increase $2.6 million, or less than 1 percent,
over current levels.

In vetoing the bill for the third time, the Republican governor had
called it financially irresponsible, and said it would underfund state
agencies.

Republican

Senate:
24 Democrats
18 Republicans

House:
42 Democrats
28 Republicans

Enrollment:
316,000

"I made a promise to New Mexicans when I was first elected to this
office over seven and a half years ago that I would never leave the
state in worse fiscal shape than when I took office," Gov. Johnson said
in a statement at the time of the May 24 veto. "I have not and will not
sign a budget that constitutes a step toward a future tax
increase."

The state faced a possible government shutdown July 1 if a budget
had not been passed. The Senate voted 36- 4, and the House voted 62-7,
to override the third and final veto.

The New Mexico Education Association called the budget bare-bones
and pointed out that it provided for no increase for teacher pay or
health-insurance costs.

In other news, Gov. Johnson vetoed a bill in March that would have
created an Indian education division within the New Mexico Department
of Education to handle Native American education issues. He argued that
such matters are already adequately handled within the department.

Also, he vetoed a bill that would have divided the Albuquerque
schools into three separate districts. He opposed the bill because the
start-up costs to create three new districts from the 85,000-student
Albuquerque school system would have been too high. If any of the three
districts had included a smaller commercial tax base than the others,
he added, homeowners likely would have to make up the difference in
order to equalize funding.

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